Office Relationship Prompts Ashland CEO to Retire

COVINGTON, Ky. — The chairman and chief executive of chemical and motor oil seller Ashland Inc. decided to retire because he violated a company policy banning office relationships, a company spokesman said.

Paul W. Chellgren, 59, announced Friday he would retire in November after working 28 years for the company that makes Valvoline motor oil, Zerex antifreeze and Eagle One car-care products.

Company spokesman Stan Lampe later said that Chellgren violated a policy stating that “a supervisor may not date or have a romantic relationship with an employee who reports through his or her management chain, even when the relationship is voluntary or welcome.”

A telephone message left Sunday at Chellgren’s home seeking comment was not returned.

The policy also states that such activity “will subject all involved to disciplinary action, up to, and including discharge.”

Lampe said Chellgren was not forced out by the company’s board of directors and won’t face any other penalties.

“It was a mutual decision between him and the board for him to retire,” Lampe said.

Lampe would not reveal the identity or job title of the other employee.

Chellgren’s wife of 31 years filed for divorce on July 12.

Sheila Mary McManus Chellgren, 62, said in the divorce filing that the marriage was “irretrievably broken” and all attempts at reconciliation had failed. She did not list a specific cause for the breakup, and her attorney, Suzanne Cassidy, declined to elaborate.

Chellgren has been Ashland’s chief executive since 1996 and was named chairman in 1997. He also served as chief financial officer and chief operating officer.